Working Papers, Department of Economics, Lund University
Fredrik N. G. Andersson
A Matter of Time: Revisiting Growth Convergence in China
(), David Edgerton
() and Sonja Opper
Abstract: China’s unbalanced growth strategy has seemingly fostered
growing inter-regional growth disparities and there is little evidence of
wealth trickling down from richer provinces to poorer provinces. Given
pronounced and frequent inter-regional short-term fluctuations in economic
growth, standard convergence tests, however, may be ill specified to detect
underlying long-term growth trends in small samples. Our paper suggests a
novel approach to distinguish between long-term growth trends and
short-term fluctuations. Based on provincial data from 1978 to 2009, our
results indicate that China’s provinces only diverge over the short-term.
Over the long term, provinces cluster into two converging growth clubs.
Keywords: regional convergence; developing countries; growth; China; (follow links to similar papers)
JEL-Codes: O14; O33; O41; R11; (follow links to similar papers)
37 pages, July 4, 2011, Revised March 1, 2012
- This paper is published as:
Andersson, Fredrik N. G., David Edgerton and Sonja Opper, (2013), 'A Matter of Time: Revisiting Growth Convergence in China', World Development, Vol. 45, pages 239-251
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